Rice prices, supply ‘satisfactory’, says commerce minister

Commerce Minister Khandakar Abdul Muktadir has described the price and supply situation in the rice market as satisfactory after inspecting wholesale and retail markets in the capital.

According to him, the government holds satisfactory stocks of rice and wheat.

Speaking at the commerce ministry on Wednesday after inspecting the Badamtali wholesale rice market and the Nayabazar retail market, the minister said: "We are monitoring the market closely. At present, both the price and supply of rice remain in a satisfactory state.

“The government, however, has the capacity to intervene in the market if needed."

State Minister for Food Md Abdul Bari accompanied him on both the market visit and at the press conference.

The minister said he and the food state minister visited the markets to verify reports after a newspaper carried a story about rising rice prices.

After going through wholesale depots and retail shops, they found “no significant change” in prices.

While some traders mentioned that prices of certain rice varieties rose by Tk 1 to Tk 1.5 per kg after Eid-ul-Azha, Muktadir maintained that this does not indicate a major price hike.

Traders also told him some mill owners had attempted to raise prices by Tk 100 per sack, but that increase never took hold in the market and was subsequently rolled back.

The minister says a price difference of Tk 2 to Tk 4 per kg between different grades of rice is normal, as is a gap between new and old crop rice.

“When a new harvest is good, the price of new rice tends to be lower. Fluctuations of Tk 1 to Tk 2 are a routine feature of the market.”

Turning to other essential commodities, the minister said the supply of edible oil and other products is stable, with prices remaining steady.

Monitoring teams are tracking daily price charts and supply statistics across markets.

On government grain reserves, the minister said stocks of rice and wheat are at a satisfactory level and the government can intervene immediately to boost market supply if conditions require it.

No such need has arisen at present, he said.

Asked about price trends following the budget, he said inflation figures are calculated against a base price, and compared with the past few months and the same period last year, the food market is now considerably more stable.

He added that the Tk 4 per litre rise in soybean oil prices has already been explained transparently.

State Minister Bari said the government currently holds about 2 million tonnes of food grain in reserve, well above the designated emergency stock level, and that the stockpile is growing daily through ongoing paddy and rice procurement drives.

"There is no reason for the public to panic about the rice market," he added.